Price target: Slashed to $323, from $416
Rating: Downgraded to "neutral," from "outperform"
Credit Suisse said the news could hurt the 737 Max's return to service due to a loss of trust with regulators, increased political risk, and waning public confidence.
"In our interpretation, the key takeaway is that BA seems to have known about MCAS's erroneous tendencies (in sim or otherwise) prior to certification," Credit Suisse analysts wrote in a note to clients Monday.
The firm added: "We can no longer defend the shares in light of the latest discoveries, discoveries which significantly increase the risk profile for investors."
Price target: Cut to $375, from $470
Rating: Downgraded to "neutral," from "buy"
According to UBS, the internal communications that were turned over to the FAA could motivate the agency to take a second look at other information provided by Boeing.
"We see increasing risk that the FAA won't follow through with a certification flight in November and lift the emergency grounding order in December," UBS wrote in a note to clients Monday.
The bank added: "Our confidence in what multiple the market will award to Boeing following the 737 Max return to service is no longer as optimistic."
Price target: Reduced to $370, from $400
Rating: Neutral
Bank of America Merrill Lynch pointed out that Boeing has only one engineer and one person with a science degree on its board, leaving a gap for oversight into Environmental, Social, and Governance concerns.
"We see increased uncertainty related to the MAX return to service timeline, Boeing's culture, brand and corporate governance," BAML analysts said in a note to clients Monday.
The firm continued: "Risk management, disclosure, and accountability of management and the board are key ESG investor concerns and could weigh on the stock in the wake of this setback."
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